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Nissan and Daimler to Produce Engines Together in North America

DETROIT, Jan. 8, 2012 /CNW/ - In the latest step forward in the
collaboration of the Renault-Nissan Alliance and Daimler, Nissan's
Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for
Infiniti and Mercedes-Benz starting in 2014.

Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline
engines together at Nissan's powertrain assembly plant in Decherd,
Tenn. Production will begin in 2014, with installed capacity of 250,000
units per year once full ramp-up is achieved. The Decherd facility will
produce engines for Mercedes-Benz and Infiniti models.

"This is the newest milestone in our pragmatic collaboration and our
most significant project outside of Europe so far," said Renault-Nissan
CEO Carlos Ghosn. "Localized capacity reduces exposure to foreign
exchange rates while rapidly enabling a good business development in
North America - a win-win for the Alliance and Daimler."

The collaboration marks the first production of Mercedes-Benz engines in
the North America Free Trade region. The Tennessee plant's strategic
location and logistics links ensure a direct supply of engines starting
in 2014 for the Mercedes-Benz C-Class, built at Daimler's vehicle plant
in Tuscaloosa, Ala.

"In the context of our Mercedes-Benz 2020 growth strategy, we have
decided that we will expand the production capacities required for this
close to the customers. Through the strategic extension of our
cooperation with Renault-Nissan we can realize near-market engine
production in the NAFTA region on attractive economic terms and make
optimum use of synergies arising from the cooperation," Dr. Dieter
Zetsche, Chairman of the Daimler Board of Management and Head of
Mercedes-Benz Cars, said. "Thus we are systematically broadening our
manufacturing footprint in this important growth market."

Nissan began powertrain assembly in Decherd in 1997. Today it
manufactures 4-, 6- and 8-cylinder engines for the complete lineup of
U.S.-produced Nissan and Infiniti vehicles. The plant also houses
crankshaft forging and cylinder block casting operations. In 2011,
Decherd produced more than 580,000 engines on a covered area of more
than 1.2 million square feet (111,000 square meters).